- Indonesia rises in global crypto adoption
- Regulatory changes in Indonesia
- Factors driving global crypto activity
Indonesia has entered the global crypto adoption index by Chainalysis, climbing to third position as global crypto activity surged past 2021 bull market levels.
Indonesia rises in global crypto adoption
Indonesia has made its debut in Chainalysis' global crypto adoption index, climbing to third position, surpassing Vietnam. This comes amid a significant increase in global crypto activity which reached levels not seen since the 2021 bull market. Indonesia's new ranking places it behind India and Nigeria, which continue to lead the index since 2023.
Regulatory changes in Indonesia
Indonesia's rise in the crypto adoption index comes amid efforts to build a regulatory framework around digital assets. In April 2024, the country signed an agreement with Australia to establish a crypto information-sharing framework aimed at improving tax compliance and asset identification. Indonesia’s financial watchdog, the Financial Services Authority also ramped up efforts to regulate the sector, requiring crypto firms to go through a regulatory sandbox before obtaining licenses by 2025.
Factors driving global crypto activity
Chainalysis says the surge in crypto activity globally has been driven by a variety of factors. The launch of spot Bitcoin exchange-traded funds in the U.S. fueled institutional growth, while stablecoin adoption has risen in low-income regions, particularly for retail transactions in Sub-Saharan Africa and Latin America.
Indonesia's rise in the Chainalysis crypto adoption index reflects the overall growth of crypto activity globally, despite some regional differences. Efforts in regulation and infrastructure development have helped the country secure a leading position in the new era of digital finance.
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